OpenStax Principles of Accounting. Volume 2: Managerial Accounting Chapter 7: Budgeting a static budget for the sales of 5,000 units. These variances were observed: PA16. LO 7.5 Titanium Blades refines titanium for use in all brands of razor blades. It prepared Actual Results Variances Sales $150,000 $25,000 Favorable Variable expenses 77.800 12,800 Fixed expenses Unfavorable 70,300 300 Unfavorable Net income (loss) 1,900 11.900 favorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. Solution Actual Static Flexible Actual Fav. Results Variance Budget Budget Results Variance Unfav. Units Sales 150,000 25,000 F 150,000 Variable expenses 77,800 12,800 U 77,800 Fixed expenses 70.300 70,300 300 U 1,900 Net income (loss) 11,900 F 1,900